How aggregation works

Municipal electricity aggregation is a kind of group electricity buying program for a city or town:

  • Hubbardston buys electricity from an electricity supplier that it chooses, and it locks in long-term pricing.
  • You receive a new price for the Electricity Supply charge on your National Grid electric bill.
  • National Grid remains Hubbardston’s electric utility and continues to deliver your electricity, address power outages, and handle all billing as it does now.

Aggregation is possible because in Massachusetts we can choose our electricity supplier, which is the company that puts electricity on the grid for us. But we have no choice in our electric delivery utility. If you live in Hubbardston, National Grid is your electric delivery utility no matter what.

Municipal electricity aggregation was enabled by the Massachusetts Restructuring Act of 1997 (Chapter 164, Section 134), and it is regulated by the Massachusetts Department of Public Utilities.

Before aggregation

Before an aggregation launches, most customers have National Grid’s Basic Service. This means National Grid is supplying (buying) your electricity in addition to delivering it, and National Grid uses their Basic Service price to calculate the Electricity Supply charge on your bill. You are placed on National Grid’s Basic Service when you first open your account, and you can always go back to it.

National Grid’s Basic Service prices change seasonally, every 6 months or less.

Diagram describing how supply and delivery works without Hubbardston Community Power. Detailed description above after the header Before aggregation.

With an aggregation in place

With an aggregation in place, an electricity supplier chosen by the Town is supplying electricity, but National Grid continues to deliver it without interruption. National Grid uses the price provided by that electricity supplier to calculate the Electricity Supply charge on your bill instead of their Basic Service price.

Hubbardston Community Power prices will be fixed for 12 months or more.
Diagram describing how supply and delivery works with Hubbardston Community Power. Detailed description above after the header With an aggregation in place.

Will you save money?

Maybe! According to a report by UMass Amherst, the majority of communities with aggregation programs do see some savings compared with National Grid’s Basic Service price.

However, Hubbardston Community Power will offer long-term fixed prices, and National Grid’s prices change every six months or less. As a result, savings compared with National Grid can never be guaranteed.

If you are not happy with the program, you are always free to leave the program at any time with no fee or penalty.

Learn more about aggregation

Example National Grid bill
How to participate
The implementation process